The Unexpected Airline That Has Filed For Bankruptcy And Cancelled All Flights

On October 21, flyEgypt became the latest airline to announce bankruptcy, canceling all scheduled flights and grounding its single remaining Boeing 737-800 after a difficult few years for the aviation industry. During the height of the COVID-19 pandemic, global passenger traffic fell from 4.5 billion to a low of 1.8 billion, causing the aviation industry to hemorrhage hundreds of billions of dollars. Fortunately, air travel bounced back in 2023 and recorded world passenger numbers just 3% lower than the pre-pandemic peak in 2019. This trajectory continued into the remainder of 2024, which is set to exceed numerous industry records, including $996 billion in total revenues and global passenger traffic of some 4.96 billion. 

However, not all airlines are enjoying this surge in business — and flyEgypt is not alone. Caribbean airline LIAT ceased operations in January 2024, axing some 100 jobs. Air Malta followed on March 30, when leadership announced the business would soon enter liquidation. Armenian airline FlyArna was next, entering liquidation in May 2024 after just three years in business. Even popular budget carrier Spirit — one of the budget-friendly airlines with the lowest last-minute flight prices — just barely avoided bankruptcy after a timely refinancing deal.

The airline was established in 2014 and launched its flyEgypt first flight — Cairo to Jeddah — in February 2015. It had flight links to countries across the Middle East and Asia, including the United Arab Emirates, Armenia, and Uzbekistan. There were important routes between Europe and Red Sea resort cities as well, including Sharm El Sheikh and Hurghada, which have beachfront lounges with fantasy-like views. In total, flyEgypt had 21 routes across 19 different destinations in 10 countries.

At its peak, in 2022, the airline had a fleet of nine jets — seven Boeing 737-800s and two Boeing 737-700s. Two years later, only one of these planes remained after flyEgypt decided not to renew the leases. Compounding these financial concerns were mounting debts to investors in Germany and Italy, along with outstanding payments to numerous local entities like the National Air Navigation Services Company and several Egyptian airports.

flyEgypt is yet to explain the situation, but one can speculate. For instance, Cairo is more dangerous than you may realize, causing some tourists to avoid the Egyptian capital. Also, flyEgypt's customer experience left much to be desired, according to TripAdvisor reviews. 657 users reviewed the airline, and most appraisals were negative, citing poor legroom, seat comfort, in-flight entertainment, customer service, and food and beverages. Three metrics — value for money, cleanliness, and check-in and boarding — achieved middling average scores of 2.5 out of five.